Oversubscribed 56.64 Times and Raised IDR 404 Billion in Funds, ERAL Officially Goes to the Stock Exchange

Photo: Special

JAKARTA - PT Sinar Eka Selaras Tbk (ERAL) has listed its shares on the Indonesia Stock Exchange on August 8, 2023 through an initial public offering (IPO). In this corporate action, the company succeeded in obtaining fresh funds from the capital market of IDR 404.6 billion through the issuance of 1.037 billion new shares on the stock exchange.

As an issuer that is still affiliated with the Erajaya Group, ERAL has a fairly broad business ecosystem. This is also a major supporting factor for the success of the company's business, which is engaged in the leading multi-brand retail and distribution solution provider in Indonesia.

This also attracted investors' interest in ERAL shares which were listed on the stock exchange, as seen from the high interest during the public offering period, so that they were oversubscribed or oversubscribed by 56.64 times.

The company has set the IPO price for ERAL shares at IDR 390 per share from the initial range of IDR 370 - IDR 410 per share. Of the funds obtained, around 37 percent will be used for expansion of existing businesses.

Then around 13.75 percent will be used to support new business expansion. The remaining 49.25 percent is used to meet the Company's working capital needs.

President Director of PT Sinar Eka Selaras Tbk (ERAL) Djohan Sutanto said the company was here to take advantage of the huge potential of the lifestyle retail sector which continues to grow in Indonesia.

"In addition, consumption activities are the biggest support for national economic growth to date", he explained, Tuesday, August 8.

In this corporate action, ERAL was assisted by PT BNI Sekuritas and PT Mirae Asset Sekuritas Indonesia. After the IPO, the composition of ERAL shareholders became PT Erajaya Swasembada Tbk 79.9998 percent, the public 19.9764 percent, Employee Stock Allocation (ESA) 0.0236 percent, and Jemmy Hady Wijaya 0.0002 percent.

Business Development Commitment

Djohan said, with experience in the retail sector and support from majority shareholders, his party continues to develop its business by maximizing the company's existing business and seizing new opportunities in the future.

ERAL provides innovative solutions and outstanding services through a portfolio of active lifestyle products and is supported by an omnichannel network throughout Indonesia. Until now, ERAL already has various top brand portfolios for a number of product segments in the retail sector.

In the Accessories (ecosystem) segment, ERAL manages various top product brands, such as Apple, Huawei, JBL, Microsoft, Playstation, Samsung, Xiaomi, and so on.

Meanwhile in the Internet of Things (IoT) segment, ERAL manages the brands DJI, Garmin, GoPro, Marshall, Segway and so on. Then in the sportswear, fashion and outdoors segments, ERAL has a portfolio of JD Sports, ASICS and Urban Adventure brands.

Performance Targets

The company's strategy to continue developing its business in the lifestyle retail sector is driven by the belief that the growth of the productive age population (15-59 years) will be the main driver for increasing spending on consumption of active lifestyle products in Indonesia.

In this case, there are 177 million Indonesians (66 percent of the total population) who fall into the productive age group. Due to its large population, Indonesia has the highest retail market size compared to other Southeast Asian countries with an estimated market value of US$14.2 billion in 2025 based on data from Frost & Sullivan.

"Demand for active lifestyle products in Indonesia shows a positive trajectory, considering that the dominance of the productive age population is the main supporter of GDP growth and consumption in Indonesia", concluded Djohan Sutanto.